NZCAD Sell-Off DeepensThe NZDCAD short trade issued ahead of the recent BOC meeting is developing nicely with price close to hitting the final target at .8351. The Canadian Dollar has been much stronger in the wake of the meeting, which saw the BOC hike rates by .5%. However, the .8351 level marks an important level (current YTD low) and as such it will be prudent to monitor how price interacts with this level on the first attempt. More aggressive bears can hold onto shorts here, however if we breakdown below the level there will be opportunities for fresh short trades in the coming weeks.Keep an Eye OnNZD is currently suffering more than CAD as a result of the risk-off moves we are seeing across the board. Equities and commodities prices are under pressure with USD rallying firmly on Monday. If the current dynamic continues, we can expect CAD to remain stronger than NZD near-term. However, if oil prices move materially lower from here this might affect a shift in sentiment.
Source: Tickmill
